And then, in the final 30 minutes of the session, investors closed their books on the quarter by taking profits. The Dow Jones Industrial Average ($INDU) fell 97 points, or 1%, to close at 9,774. The S&P 500 ($INX) lost 11, or 1%, to 1,031. The more volatile Nasdaq Composite ($COMPX) slipped 26 points, or 1.2%, to settle at 2,109.

The market has two moods these days, says Ed Yardeni, bullishly prescient president of Yardeni Research: Anxiety and Panic, and that's created a gaping schism between sentiment and fundamentals. "The technical damage certainly is pointing in the direction of a bear market for stocks," Yardeni wrote to clients Wednesday. "Investors seem to be working on discounting a global double dip recession."

"I believe that the fundamentals aren't likely to be bad enough to justify much more downside," Yardeni added. "Global growth is slowing, but another global recession is unlikely. Profits are likely to remain robust."